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GuidetoSection80Deductions
Forfinancialyear201415&201516(withchangeslistedforFY201617)
DeductionsonSection80C,80CCC&80CCD
Section80C
Undersection80C,adeductionofRs1,50,000canbeclaimedfromyourtotalincome.Insimpleterms,youcanreduceuptoRs1,50,000fromyourtotaltaxableincome
throughsection80C.ThisdeductionisallowedtoanIndividualoraHUF.
AmaximumofRs1,50,000canbeclaimedforfinancialyear201415.Thelimitforfinancialyear201516andfinancialyear201617isalsoRs1,50,000.
Ifyouhavepaidexcesstaxes,buthaveinvestedinLIC,PPF,Mediclaimetc.youcanfileyourIncomeTaxReturnandgetarefund.ClickheretostartfilingyourI
TReturn(https://cleartax.in/)andgetarefund.
Clickheretoseealltheinvestmentoptionstosave
Eligibledeductionsundersection80C
Severalinvestments,expensesandpaymentsareallowedtobeclaimedundersection80C.MaximumdeductioncannotexceedRs1,50,000.
EligibleInvestments
1.InvestmentinPPFYoucanopenaPPFaccountandclaimdeductiononthedepositsmade.AmaximumofRs1,50,000isallowedtobeinvestedinonefinancial
year.TheminimuminvestmentrequiredeachyearisRs500.Interestiscompoundedannuallyandisresetquarterly.InterestonPPFaccountisfullytaxfree.The
PPFaccountmaturesafter15years.Receiptsonmaturityorwithdrawalsaretaxfree.Moneyisallowedtobewithdrawnafter5years.YoucanopenaPPFaccount
foryourspouseorchildandclaimataxdeductioninyourtaxreturnfordepositsmade.ForaHUF,itcanbeinthenameofanymemberofthefamily.
2.PurchaseofNSCsNationalSavingsCertificateorNSCareeligiblefordeductionintheyeartheyarepurchased.ThesecanbeboughtfromdesignatedPost
Office.Theirtermisfor5yearsandinterestearnediscompoundedannually.Interestearnedistaxable.Interestisalsoeligiblefordeductionundersection80C
duringthetermoftheNSCs(exceptthelastyear).
3.InvestmentinSukanyaSamridhiaccountAmaximumofRs1,50,000canbedepositedintheSukanyaSamridhiAccountforagirlchild.Interestrateis
compoundedannually.Thisinterestisfullyexemptfromtax.AminimumofRs1,000mustbedepositedinayear.Receiptsonmaturityfromtheaccountaretax
free.
4.InvestmentinELSSELSSorEquityLinkedSavingsSchemeisatypeofamutualfundinvestment.InvestmentsmadeinELSSfundsduringthefinancialyearare
eligiblefordeductionundersection80C.Thesefundshavea3yearlockinperiod.
5.ULIPSorUnitLinkedInsurancePlanULIPSsoldwithlifeinsurancearealsoeligiblefordeductionundersection80C.IncludesContributiontoUnitLinked
InsurancePlanofLICMutualFunde.g.Dhanraksha1989andcontributiontoOtherUnitLinkedInsurancePlanofUTI.
6.SumdepositedinFiveYearDepositSchemeinPostOffice.
7.5yearfixeddepositwithabank.
8.AmountdepositedunderSeniorCitizensSavingScheme.
9.Subscriptiontoanynotifiedsecurities/notifieddepositsscheme.e.g.NSS
10.ContributiontonotifiedPensionFundsetupbyMutualFundorUTI.
11.SumpaidassubscriptiontoHomeLoanAccountSchemeoftheNationalHousingBankorcontributiontoanynotifieddepositscheme/pensionfundsetupby
NationalHousingBank.
12.Subscriptiontodepositschemeofapublicsector,companyengagedinprovidinghousingfinance(publicdepositschemeofHUDCO).
13.ContributiontonotifiedannuityPlanofLIC(e.g.JeevanDharaandJeevanAkshay)orUnitsofUTI/notifiedMutualFunds.
14.Subscriptiontoequityshares/debenturesformingpartofanyapprovedeligibleissueofcapitalmadebyapubliccompanyorpublicfinancialinstitutions.
15.SubscriptiontoanynotifiedbondsofNABARD(NationalBankforAgricultureandRuralDevelopment).
EligibleExpenses
1.EPForEmployee'sshareofPFContributionEmployeecontributiontoEPFisalsoeligiblefordeductionundersection80C.12%ofyourbasic+DAisdeducted
bytheemployeranddepositedasyourcontributioninEmployee'sProvidentFundSchemeorRecognizedProvidentFund.
2.LifeInsurancePremiumPaymentThepolicymustbeinthetaxpayer'snameorspouse'soranychild'sname(childmaybedependent/independent,
minor/major,ormarried/unmarried).ForaHUF,itmaybeonlifeofanymemberofHUF.The80Cdeductionisvalidoninsurancepoliciespurchasedafter1stApril,
2012onlyifthepremiumislessthan10%ofsumassured.Benefitsforexistingpurchasedpoliciescontinue.Thedeductionisalsoallowedonpaymentsmadeby
GovernmentemployeestoCentralGovernmentEmployeesInsuranceScheme.
3.Children'sTuitionFeePaymentTuitionfeespaidtoanyschool,college,universityorothereducationalinstitutionsituatedwithinIndiaforthepurposeoffulltime
educationofanytwochildren(includingpaymentsforplayschool,prenurseryandnursery).
4.PrincipalRepaymentsonLoanforpurchaseofHousePropertyPrincipalrepaymentofloantakenforbuyingorconstructingaresidentialhousepropertyis
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alsoeligible.Deductionisalsoallowedforstampduty,registrationfeesandotherexpensesoftransferofsuchpropertytothetaxpayer.However,ifthepropertyis
transferredorsoldbeforetheexpiryof5yearsfromtheendofthefinancialyearinwhichitspossessionwastakenthetotaldeductionallowedforvariousyears
shallbetaxedinthatyear.
https://cleartax.in/Guide/Section80Deductions 1/9
2/2/2017 GuidetoSection80Deductions
5.SumpaidforsecuringDeferredAnnuitySumpaidundernoncommutabledeferredannuityforanindividualonthelifeofthetaxpayer,spouseoranychild.Also
allowedonsumdeductedfromsalarypayabletoGovt.Servantforsecuringdeferredannuityforselfspouseorchild.Paymentlimitedto20%ofsalary.
Notenough80CdeductioninyourForm16?
IfyouneedhelpclaimingSection80Deductionslike80C,investments,mediclaim,orcalculatingHRAtosaveontaxes,cleartaxsCAscanhelpyouclaimarefund(if
applicable)andefilein48hours.
StartfilingyourIncomeTaxReturn>(https://cleartax.in/)
GetsavingsonIncomeTaxeswithaCAtohelpyoufile.
Sometimes,youmayhavedeductionsorinvestmentseligiblefor80C,butyoumaynothavesubmittedproofstoyouremployer,soexcessTDSmaybededucted.Youcan
stillclaimthesedeductionswhileefilingaslongasyouhavetheproofswithyou.
Iwantanexperttohelpmefile>(https://cleartax.in/Meta/CharteredAccountant)
Section80CCC:DeductionforPremiumPaidforAnnuityPlanofLICorOtherInsurer
ThissectionprovidesdeductiontoanIndividualforanyamountpaidordepositedinanyannuityplanofLICoranyotherinsurer.Theplanmustbeforreceivingpension
fromafundreferredtoinSection10(23AAB).
Iftheannuityissurrenderedbeforethedateofitsmaturity,thesurrendervalueistaxableintheyearofreceipt.
Section80CCD:DeductionforContributiontoPensionAccount
Employee'scontributionSection80CCD(1)AllowedtoanIndividualwhomakesdepositstohis/herPensionaccount.Maximumdeductionallowedis10%ofsalary(in
caseoftaxpayerbeinganemployee)or10%ofgrosstotalincome(incaseoftaxpayerbeingselfemployed)orRs1,00,000whicheverisless.ThelimitofRs1,00,000
hasbeenincreasedtoRs1,50,000startingfinancialyear201516(assessmentyear201617).
DeductionforselfcontributiontoNPSsection80CCD(1B)Anewsection80CCD(1B)hasbeenintroducedforadditionaldeductionforamountdepositedbya
taxpayertotheirNPSaccount.ContributionstoAtalPensionYojanaarealsoeligible.DeductionisallowedoncontributionuptoRs50,000.
Employer'scontributionSection80CCD(2)Deductionisallowedforemployer'scontributiontoemployeespensionaccountupto10%ofthesalaryoftheemployee.
Thereisnomonetaryceilingonthisdeduction.
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DeductionsonInterestonSavingsAccount
Section80TTA:DeductionfromgrosstotalincomeforInterestonSavingsbankaccount
AdeductionofmaximumRs10,000canbeclaimedagainstinterestincomefromasavingsbankaccount.Interestfromsavingsbankaccountshouldbefirstincludedin
otherincomeanddeductioncanbeclaimedofthetotalinterestearnedorRs10,000,whicheverisless.ThisdeductionisallowedtoanindividualorHUF.Anditcanbe
claimedforinterestondepositsinsavingsaccountwithabank,cooperativesocietyorpostoffice.Section80TTAdeductionisnotavailableoninterestincomefromfixed
depositsorrecurringdepositsorinterestincomefromcorporatebonds.
DeductionsonHouseRent
Section80GG:DeductionforHouseRentPaidwhereHRAisnotreceived
ThisdeductionisavailableforrentpaidwhenHRAisnotreceived.Taxpayerorhisspouseorminorchildshouldnotownresidentialaccommodationattheplaceof
employment.
Taxpayershouldnothaveselfoccupiedresidentialpropertyinanyotherplace.
Taxpayermustbelivingonrentandpayingrent.
Deductionavailableistheminimumof
1.Rentpaidminus10%oftotalincome
2.Rs.2000/permonth
3.25%oftotalincome
ForFinancialyear201617Forcalculatingdeductionabove,Rs2,000permonthhasbeenraisedtoRs5,000permonth.ThereforeamaximumofRs60,000per
annumcanbeclaimedasadeduction. ?
DeductionsonEducationLoanforHigherStudies
https://cleartax.in/Guide/Section80Deductions 2/9
2/2/2017 GuidetoSection80Deductions
DeductionsonEducationLoanforHigherStudies
Section80E:DeductionforInterestonEducationLoanforHigherStudies
Deductionisallowedforinterestonloantakenforpursuinghighereducation.Thisloanmayhavebeentakenforthetaxpayer,spouseorchildrenorforastudentfor
whomthetaxpayerisalegalguardian.Thedeductionisavailableforamaximumof8yearsortilltheinterestispaid,whicheverisearlier.Thereisnorestrictiononthe
amountthatcanbeclaimed.
DeductionforFirstTimeHomeOwners
Section80EE:DeductionsonHomeLoanInterestforFirstTimeHomeOwners
ForFinancialYear201314andFinancialYear201415
ThissectionprovideddeductionontheHomeLoanInterestpaid.ThedeductionunderthissectionisavailableonlytoIndividualsforfirsthousepurchasedwherethe
valueofthehouseisRs40lakhsorlessandloantakenforthehouseisRs25lakhsorless.AndtheLoanhasbeensanctionedbetween01.04.2013to31.03.2014.The
aggregatedeductionallowedunderthissectioncannotexceedRs1,00,000andisallowedforfinancialyears201314&201415(Assessmentyear201415and2015
16).
Thisdeductionisnotavailableforfinancialyear201516(assessmentyear201617).
ForFinancialYear201617
ThissectionwasrevivedinBudget2016andisapplicablestartingFY201617.ThedeductionunderthissectionisavailableonlytoanIndividualwhoisafirsttimehome
owner.ThevalueofthepropertypurchasedmustbelessthanRs50LakhsandhomeloanmustbelessthanRs35lakhs.AndtheLoanmustbetakenfromafinancial
institutionandmustbesanctionedbetween01.04.2016to31.03.2017.Underthissection,anadditionaldeductionofRs50,000canbeclaimedonhomeloaninterest.
ThisisinadditiontodeductionofRs2,00,000allowedundersection24oftheincometaxactforaselfoccupiedhouseproperty.Thereisnorestrictiononthenumberof
yearsforwhichthisdeductioncanbeclaimed.
DeductionsonRajivGandhiEquitySavingScheme(RGESS)
Section80CCG:RajivGandhiEquitySavingScheme(RGESS)
TheRajivGandhiEquitySavingScheme(RGESS)waslaunchedafterthe2012Budget.InvestorswhosegrosstotalincomeislessthanRs.12lakhscaninvestinthis
scheme.Uponfulfilmentofconditionslaiddowninthesection,thedeductionislowerof,50%ofamountinvestedinequitysharesorRs25,000.
DeductionsonMedicalInsurance
Section80D:DeductionforpremiumpaidforMedicalInsurance
Forfinancialyear201415DeductionisavailableuptoRs.15,000/toataxpayerforinsuranceofself,spouseanddependentchildren.Ifindividualorspouseismore
than60yearsoldthedeductionavailableisRs20,000.Anadditionaldeductionforinsuranceofparents(fatherormotherorboth)isavailabletotheextentofRs.15,000/
iflessthan60yearsoldandRs20,000ifparentsaremorethan60yearsold.Therefore,themaximumdeductionavailableunderthissectionistotheextentofRs.
40,000/.(FromAY201314,withintheexistinglimitadeductionofuptoRs.5,000forpreventivehealthcheckupisavailable).
Forfinancialyear201516DeductionisraisedfromRs15,000toRs25,000.ThedeductionforseniorcitizensisraisedfromRs20,000toRs30,000.Foruninsured
superseniorcitizens(morethan80yearsold)medicalexpenditureincurreduptoRs30,000shallbeallowedasadeductionundersection80D.However,totaldeduction
forhealthinsurancepremiumandmedicalexpensesforparentsshallbelimitedtoRs30,000.
DeductionsonMedicalExpenditureforaHandicappedRelative
Section80DD:DeductionforRehabilitationofHandicappedDependentRelative
Deductionisavailableon:
1.Expenditureincurredonmedicaltreatment,(includingnursing),trainingandrehabilitationofhandicappeddependentrelative
2.Paymentordeposittospecifiedschemeformaintenanceofdependenthandicappedrelative.
Wheredisabilityis40%ormorebutlessthan80%fixeddeductionofRs50,000.
Wherethereisseveredisability(disabilityis80%ormore)fixeddeductionofRs1,00,000.Acertificateofdisabilityisrequiredfromprescribedmedicalauthority.
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Note:Apersonwith'severedisability'meansapersonwith80%ormoreofoneormoredisabilitiesasoutlinedinsection56(4)ofthe'Personswithdisabilities(Equal
opportunities,protectionofrightsandfullparticipation)'Act.
https://cleartax.in/Guide/Section80Deductions 3/9
2/2/2017 GuidetoSection80Deductions
CertificatecanbetakenfromaSpecialistasspecified.
Patientsgettingtreatedinaprivatehospitalarenotrequiredtotakethecertificatefromagovernmenthospital.
Patientsreceivingtreatmentinagovernmenthospitalhavetotakecertificatefromanyspecialistworkingfulltimeinthathospital.Suchspecialistmusthaveapost
graduatedegreeinGeneralorInternalMedicineoranyequivalentdegree,whichisrecognisedbytheMedicalCouncilofIndia.
CertificateinForm10Iisnolongerrequired.Thecertificatemusthavenameandageofthepatient,nameofthediseaseorailment,name,address,registration
numberandthequalificationofthespecialistissuingtheprescription.IfthepatientisreceivingthetreatmentinaGovernmenthospital,itshouldalsohavename
andaddressoftheGovernmenthospital.
Forfinancialyear201516ThedeductionlimitofRs50,000hasbeenraisedtoRs75,000andRs1,00,000hasbeenraisedtoRs1,25,000.
DeductionsonMedicalExpenditureonSelforDependentRelative
Section80DDB:DeductionforMedicalExpenditureonSelforDependentRelative
AdeductionRs.40,000/ortheamountactuallypaid,whicheverislessisavailableforexpenditureactuallyincurredbyresidenttaxpayeronhimselfordependentrelative
formedicaltreatmentofspecifieddiseaseorailment.
ThediseaseshavebeenspecifiedinRule11DD.Acertificateinform10IistobefurnishedbythetaxpayerfromanyRegisteredDoctor.
IncaseofseniorcitizenthedeductioncanbeclaimeduptoRs60,000oramountactuallypaid,whicheverisless.
Forfinancialyear201516forveryseniorcitizensRs80,000isthemaximumdeductionthatcanbeclaimed.
DeductionsforPersonsufferingfromPhysicalDisability
Section80U:DeductionforPersonsufferingfromPhysicalDisability
DeductionofRs.50,000/toanindividualwhosuffersfromaphysicaldisability(includingblindness)ormentalretardation.Incaseofseveredisability,deductionofRs.
100,000canbeclaimed.CertificateshouldbeobtainedfromaGovt.Doctor.TherelevantruleisRule11D.Thisisafixeddeductionandnotbasedonbillsorexpenses.
Forfinancialyear201516ThedeductionlimitofRs50,000hasbeenraisedtoRs75,000andRs1,00,000hasbeenraisedtoRs1,25,000.
DeductionfordonationstowardsSocialCauses
Section80G:DeductionfordonationstowardsSocialCauses
ThevariousdonationsspecifiedinSec.80Gareeligiblefordeductionuptoeither100%or50%withorwithoutrestrictionasprovidedinSec.80G.80Gdeductionnot
applicableincasedonationisdoneinformofcashforamountoverRs10,000.
Donationswith100%deductionwithoutanyqualifyinglimit:
NationalDefenceFundsetupbytheCentralGovernment
PrimeMinister'sNationalReliefFund
NationalFoundationforCommunalHarmony
Anapproveduniversity/educationalinstitutionofNationaleminence
ZilaSakshartaSamiticonstitutedinanydistrictunderthechairmanshipoftheCollectorofthatdistrict
FundsetupbyaStateGovernmentforthemedicalrelieftothepoor
NationalIllnessAssistanceFund
NationalBloodTransfusionCouncilortoanyStateBloodTransfusionCouncil
NationalTrustforWelfareofPersonswithAutism,CerebralPalsy,MentalRetardationandMultipleDisabilities
NationalSportsFund
NationalCulturalFund
FundforTechnologyDevelopmentandApplication
NationalChildren'sFund
ChiefMinister'sReliefFundorLieutenantGovernor'sReliefFundwithrespecttoanyStateorUnionTerritory
TheArmyCentralWelfareFundortheIndianNavalBenevolentFundortheAirForceCentralWelfareFund,AndhraPradeshChiefMinister'sCycloneReliefFund,
1996
TheMaharashtraChiefMinister'sReliefFundduringOctober1,1993andOctober6,1993
ChiefMinister'sEarthquakeReliefFund,Maharashtra
AnyfundsetupbytheStateGovernmentofGujaratexclusivelyforprovidingrelieftothevictimsofearthquakeinGujarat
Anytrust,institutionorfundtowhichSection80G(5C)appliesforprovidingrelieftothevictimsofearthquakeinGujarat(contributionmadeduringJanuary26,2001
andSeptember30,2001)or
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PrimeMinister'sArmeniaEarthquakeReliefFund
Africa(PublicContributionsIndia)Fund
SwachhBharatKosh(applicablefromfinancialyear201415)
CleanGangaFund(applicablefromfinancialyear201415)
https://cleartax.in/Guide/Section80Deductions 4/9
2/2/2017 GuidetoSection80Deductions
NationalFundforControlofDrugAbuse(applicablefromfinancialyear201516)
Donationswith50%deductionwithoutanyqualifyinglimit.
JawaharlalNehruMemorialFund
PrimeMinister'sDroughtReliefFund
IndiraGandhiMemorialTrust
TheRajivGandhiFoundation
Donationstothefollowingareeligiblefor100%deductionsubjectto10%ofadjustedgrosstotalincome
Governmentoranyapprovedlocalauthority,institutionorassociationtobeutilisedforthepurposeofpromotingfamilyplanning
DonationbyaCompanytotheIndianOlympicAssociationortoanyothernotifiedassociationorinstitutionestablishedinIndiaforthedevelopmentofinfrastructure
forsportsandgamesinIndiaorthesponsorshipofsportsandgamesinIndia.
Donationstothefollowingareeligiblefor50%deductionsubjectto10%ofadjustedgrosstotalincome
AnyotherfundoranyinstitutionwhichsatisfiesconditionsmentionedinSection80G(5)
Governmentoranylocalauthoritytobeutilisedforanycharitablepurposeotherthanthepurposeofpromotingfamilyplanning
AnyauthorityconstitutedinIndiaforthepurposeofdealingwithandsatisfyingtheneedforhousingaccommodationorforthepurposeofplanning,developmentor
improvementofcities,towns,villagesorboth
AnycorporationreferredinSection10(26BB)forpromotinginterestofminoritycommunity
Forrepairsorrenovationofanynotifiedtemple,mosque,gurudwara,churchorotherplace.
DeductionsonContributionbyCompaniestoPoliticalParties
Section80GGB:DeductiononcontributionsgivenbycompaniestoPoliticalParties
DeductionisallowedtoanIndiancompanyforamountcontributedbyittoanypoliticalpartyoranelectoraltrust.Deductionisallowedforcontributiondonebyanyway
otherthancash.
Politicalpartymeansanypoliticalpartyregisteredundersection29AoftheRepresentationofthePeopleAct.Contributionisdefinedaspersection293Aofthe
CompaniesAct,1956.
DeductionsonContributionbyIndividualstoPoliticalParties
Section80GGC:DeductiononcontributionsgivenbyanypersontoPoliticalParties
Deductionisallowedtoataxpayerforanyamountcontributedtoanypoliticalpartyoranelectoraltrust.Deductionisallowedforcontributiondonebyanywayotherthan
cash.
Politicalpartymeansanypoliticalpartyregisteredundersection29AoftheRepresentationofthePeopleAct.
DeductionsonIncomebywayofRoyaltyofaPatent
Section80RRB:DeductionwithrespecttoanyIncomebywayofRoyaltyofaPatent
Deductionforanyincomebywayofroyaltyforapatentregisteredonorafter01.04.2003underthePatentsAct1970shallbeavailableuptoRs.3lakhsortheincome
received,whicheverisless.ThetaxpayermustbeanindividualresidentofIndiawhoisapatentee.Thetaxpayermustfurnishacertificateintheprescribedformduly
signedbytheprescribedauthority.
DeductionsonInvestmentinLongTermInfrastructureBonds[REMOVED]
Section80CCF:InvestmentinLongTermInfrastructureBonds
ThissectionisnolongervalidfromAY201213.
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Section80DeductionTable
https://cleartax.in/Guide/Section80Deductions 5/9
2/2/2017 GuidetoSection80Deductions
80CC ForamountdepositedinannuityplanofLICoranyotherinsurerforpensionfromafundreferredtoinSection10(23AAB).
80CCD(1) Employee'scontributiontoNPSaccount(maximumuptoRs1,00,000forFY201415)
80DD Medicaltreatmentforhandicappeddependantorpaymenttospecifiedschemeformaintenanceofhandicappeddependant
Disabilityis40%ormorebutlessthan80%
Disabilityis80%ormore
Rs.75,000
Rs.1,25,000
80U Selfsufferingfromdisability:
Individualsufferingfromaphysicaldisability(includingblindness)ormentalretardation. Rs.75,000
Individualsufferingfromseveredisability
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Rs.1,25,000
https://cleartax.in/Guide/Section80Deductions 6/9
2/2/2017 GuidetoSection80Deductions
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